Steadfast joins S&P/ASX 200

Steadfast will be placed on the prestigious S&P/ASX 200 index tomorrow after listing on the Australian Securities Exchange less than 12 months ago.

The broker network has a market capitalisation of $787.6 million and has 501.6 million shares on issue, trading at $1.57 at the time of writing.

Steadfast’s share price could benefit from inclusion on the S&P/ASX 200 because the stock will attract investors with portfolios weighted to the index.

Rival group Austbrokers, which has a market capitalisation of $611 million, may be watching its competitor with some envy from outside the index.

However, Austbrokers, which listed in 2005, can point to a more robust share price. It has 60 million shares on issue, trading at $10.05 on Friday – although this is well below its 12-month high of $13.

Other insurance industry companies on the index are QBE, IAG, Suncorp and Cover-More.

The broker group will be placed on the S&P/ASX 200 after the close of trading tomorrow. Aurora Oil & Gas is being removed after being acquired by Canada-based Baytex Energy Corporation.

Published 26 May 2014 in Insurance News

http://www.insurancenews.com.au/corporate/steadfast-joins-spasx-200-rich-list